Intangible Asset

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Asset

During 2008, Cleco Katrina/Rita acquired a $177.5 million intangible asset which includes $176.0 million for the right to bill and collect storm recovery charges from customers of

Cleco Power and $1.5 million of financing costs. This intangible asset is expected to have a life of 12 years, but could have a life of up to 15 years depending on the time period required to collect the required amount from Cleco Power’s customers. The intangible asset’s expected amortization expense is based on the estimated collections from Cleco Power’s customers. At the end of its life, this asset will have no residual value. During the years ended December 31, 2012, 2011, and 2010, Cleco Katrina/Rita recognized amortization expense of $13.1 million, $11.8 million, and $11.7 million, respectively, based on actual collections.

The following table summarizes the intangible asset balance as of December 31, 2012 and 2011.

	AT DEC. 31,
(THOUSANDS)	2012		2011
Gross carrying amount	$	177,537	$	177,537
Accumulated amortization	56,992		43,942
Intangible asset	$	120,545	$	133,595

The following table summarizes the amortization expense expected to be recognized during each year through 2017 and thereafter.

(THOUSANDS)
Expected amortization expense
2013	$	14,026
2014	$	14,931
2015	$	15,876
2016	$	16,864
2017	$	18,009
Thereafter	$	40,839